1. Overview of the incident The State Grid Corporation's publicity campaign for candidates winning the first batch of equipment for the 2016 Changji-Guquan ±1100kV UHVDC project has ended. Tianjin Jingwei Zhengneng Electric Equipment Co., Ltd., a holding subsidiary of the company, won the bid for the reactor project package 2, with a total amount of about 80 million yuan. 2. Analysis and judgment that the flat wave reactor product won the bid for the first time in UHV engineering is significant. After the dry-type hollow flat wave reactor passed the product certification in 2015, the company has been actively following up the UHV engineering tender. Previously, the company won the bid for UHV engineering filter bank reactors for a total amount of 60 million yuan, laying the foundation for winning the bid for the flat wave reactor this time. The Changji-Guquan ±1100kV UHVDC project is the highest voltage transmission and transformation project in the world. It plays a demonstration role in the global energy internet strategy. The company's flat wave reactor products have made breakthrough progress in competition with traditional reactor manufacturers Beijing Electric Power Equipment General Factory, Xi'an Zhongyang Electric, and Shandong Taikai, which is significant and worthy of market attention. The performance of UHV products is highly flexible, and reactors are expected to continue to win bids, gradually contributing to the performance of UHV filter reactors that were previously bid. They are expected to be delivered in the 3rd quarter of this year and revenue confirmed in the 4th quarter. The 80 million flat wave reactor products that won the bid this time are expected to confirm revenue one after another starting in '17. The company is an important manufacturer of UHV electromagnetic wires. Production capacity is not limited. The delivery situation is related to the speed of UHV grid construction. It is conservatively estimated that during the 13th Five-Year Plan period, China will maintain the pace of construction of 4-5 UHV projects per year. The company is expected to continue to win bids after having network connection experience. Due to the company's small performance base, we continue to be optimistic about the flexibility of the company's reactor products during the peak period of UHV project construction. In the construction and renovation of the 898 Industrial Park, the prospects are high, supported by the government's “mass entrepreneurship, mass innovation” strategy. The company has entered the field of innovative industrial parks through mergers and acquisitions, raised capital to build innovative spaces, and hopes to achieve dual main business development. Currently, the 898 Innovation Industrial Park is being renovated and is expected to be completed by the middle of this year to allow enterprises to settle in. Upfront rent and exhibition are expected to balance income and expenditure, and future innovation incubation prospects are promising. 1. Profit forecast and investment advice: The company's 16-18 EPS is expected to be 0.07, 0.11, and 0.18 yuan, respectively, and the corresponding PE is 218X, 138X, and 84X, maintaining a “careful recommendation” rating. 2. 4. Risk warning: The construction of the 898 industrial park fell short of expectations; the expansion of the reactor market fell short of expectations.